Warehouse Clubs: 5 Things You Should Know

Shopping in warehouse clubs can be overwhelming, with so many products on the shelves. And one-out-of-three Americans belongs to one.

But how well do you really know your club?

In an installment Monday of an Early Show series, "Five Things You Should Know," financial journalist Vera Gibbons offered tips on how you can get the most from your warehouse club.

According to Gibvbons, the clubs' main draw is high-quality products at low prices, day-in and day-out. We're not talking about sales, but rather values.

It's a unique, interesting shopping experience: They have everything from flat-screen TVs to champagne to mini-wheats to Coach handbags and Kate Spade.

More and more goods these days are under the clubs' own labels. You never know what you're going to find. There's an almost cult-like following!

And with economic hard times upon us, while many retailers struggle, the discounters and warehouse clubs are doing relatively well. Everyone is feeling strapped. People are only going to spend money on deals or on items they think are deals.

But it's important for people to note that they're not going to save on everything, every time they shop. But the clubs do offer great savings on milk, eggs, butter and other staples in your family's fridge. They're also a good place to go for prescription drugs; warehouse prices routinely beat those of mainstream pharmacies by more than 50 percent.

Gibbons' advice:

Tip #1: Know Thy Club

If you look at the two biggest warehouse clubs, Costco and Sam's Club, both offer unique shopping experiences, selling more goods under their own labels. Both offer great values -- you can save up to 63 percent -- but one of the biggest differences is who they cater to. Sam's Club caters more to the business consumer (and can't seem to shake that reputation), while Costco caters more to the affluent consumer. So, Costco has fancier merchandise and actually scores better in several key categories: groceries, (better perishables), electronics, small appliances (lower prices), and eyeglasses (better service).

Tip#2: Pack Your Patience

There are 95 million cardholders between Costco and Sam's Club alone -- which means lines can be long (so you might want to shop during off-hours). Service at warehouse clubs is pretty much nonexistent: no fitting rooms, no shopping bags, no express check-out lanes. If you have questions about that home theater system, don't expect to get answers. Also, factor in the hassle element -- you're on your own when it comes to getting that hot tub off the warehouse floor and into your car. And you're responsible for the installation!

Tip #3: Watch Pump Prices

The best time to buy gas at warehouse clubs is now, while oil prices are dropping. Lower gas prices at the clubs show up more quickly than they do at the local gas station. That's because clubs go through gas very quickly, constantly replenishing their supply -- much more so than the local stations -- which makes the clubs more readily able to pass those lower prices on to the consumer. However, be on the lookout: When oil prices are rising, and rising quickly, gas can become one of the warehouse clubs' worst deals. That said, before you fill up, it is always a good idea to check price-comparison sites such as GasBuddy.com and GasPriceWatch.com.

Tip #4: Know Secret Pricing Codes

Knowing the warehouse clubs' pricing codes will help you make sure you're getting rock-bottom prices. At Sam's Club, if there's a "C" on the price tag, the item has been cancelled or discontinued, and if the item's price ends with a penny, it's been marked down. At Costco, look for an asterisk for discontinued goods, and anything that ends with 97 cents for markdowns.

Tip #5: Pay With Cash

Don't let the floor plan -- and your adrenaline -- dictate your purchases. It's very easy to be "wowed" with electronics and jewelry and other big-ticket items that are prominently displayed up front. How do you avoid running up the bill? Pay with cash!. According to some estimates, we spend a-third more when we pay with plastic than we do when paying with cash, and there's just a lot of impulse buying that goes on at these clubs. As many as half of us spend more than we intend to when it comes to shopping at warehouse clubs.